A Passive Activity I.includes Any Trade or Business in Which a Taxpayer Does

question 99

Multiple Choice

A passive activity
I.includes any trade or business in which a taxpayer does not materially participate.
II.includes rentals of apartment buildings, rental houses, etc., where no significant personal services are involved.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Tragedy of the Commons

A situation where individual users, acting independently according to their own self-interest, deplete or spoil shared resources, to the detriment of all users.

Sustainability

The practice of maintaining processes or states in a manner that prevents depletion of natural resources, ensuring long-term environmental balance.

Sustainability

The practice of maintaining processes or systems in a way that does not deplete natural resources or harm the environment, ensuring long-term ecological balance.

Greenhouse Gas Emissions

The release of gases into Earth's atmosphere that trap heat, contributing to global warming and climate change.